These brands' wares are very different from the apparel stereotypically sold by Walmart, which is better known for its low prices than fashion innovation. ModCloth's dresses typically cost from around $60 to $150; Walmart's dresses are usually priced between $10 and $25.

"The acquisitions of ShoeBuy and Moosejaw, in addition to Hayneedle, gave us immediate expertise and capabilities in new, more upscale categories of merchandise," Walmart CEO Doug McMillon said in a call with analysts in February.

Walmart.com, ModCloth.com

The move towards more "upscale" merchandise demonstrates the changes that the discount retailer has been forced to make as the number of potential middle-class customers plummet. Between 2000 and 2014, middle-class populations decreased in 95% of the 229 metropolitan areas reviewed in a Pew Research Center study.

In an economically-divided America, Walmart has begun working to sell to two separate groups: shoppers looking for extreme discounts and upper-income shoppers seeking higher-quality items.

Walmart has been working to grow sales from more affluent customers for years, especially when it comes to e-commerce.

RELATED: See which retailers are shuttering stores in 2017:

14PHOTOS

Retailers closing stores in 2017

See Gallery

Retailers closing stores in 2017

Up Next

See Gallery

Discover More Like This

HIDE CAPTION

SHOW CAPTION

of

SEE ALL

BACK TO SLIDE

"The nature of e-commerce, the nature of the Neighborhood Markets and other things we're doing do create an opportunity for us to be even more relevant to customers that are at the higher end of the scale," Walmart CEO Doug McMillon said at an investor meeting in October 2015, reported Fortune.

Walmart's e-commerce sales have been spurred on by recent acquisitions, growing 29% in the most recent quarter compared to the same period last year. However, the retailer has a long way to go until it catches up with rival Amazon — especially as the e-commerce giant expands its own apparel offerings.

Walmart's market value is now $298 billion, compared to Amazon's $356 billion. In February, Warren Buffett's Berkshire Hathaway sold off $900 million of its Walmart stock, the last of Buffett's shares in the company, after saying in 2016 that Amazon's competitors had not figured out a way to counter the e-commerce company.